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Beleaguered Japanese air bag supplier Takata filed for Chapter 11 bankruptcy Sunday night in U.S. bankruptcy court in Delaware and is widely expected to also file for bankruptcy in Japan.

For Takata, the bankruptcy is a stunning fall from grace. Founded in 1933 in Japan, it grew to become the world's largest air bag maker.

Yoichiro Nomura (right), CFO of Takata Corporation, exits the U.S. District Court in downtown Detroit on Monday February 27, 2017. Takata pled guilty today after being charged with fraud by the U.S. Department of Justice. A federal judge accepted the plea agreement as well as an agreement by Takata to pay up to $1 billion in fines and penalties.(Photo: Ryan Garza, Detroit Free Press)

Beleaguered Japanese airbag supplier Takata filed for bankruptcy Sunday night in the U.S. and Japan, saying it also has reached a deal to sell most of its assets to Sterling Heights-based Key Safety Systems for $1.59 billion.

Takata's bankruptcy comes after the largest safety recall in U.S. history and a yearlong effort to find a buyer for its plants and equipment.

"KSS is the ideal sponsor as we address the costs related to airbag inflator recalls and an optimal partner to the company’s customers, suppliers and employees," said Shigehisa Takada, chairman and CEO of Takata. "The combined business would be well-positioned for long-term success in the global automotive industry."

The asset sale must still be approved through the bankruptcy process.In the U.S., the company filed its case in U.S. Bankruptcy Court in Wilmington, Del.

"Although Takata has been impacted by the global airbag recall, the underlying strength of its skilled employee base, geographic reach and exceptional steering wheels, seat belts and other safety products have not diminished," Jason Luo, president and CEO of Key Safety Systems, said in a statement.

Takata was forced to recall more than 42 million vehicles worldwide because its potentially defective airbags can spray shrapnel into the faces of occupants when they detonate. The faulty inflators have killed at least 16 people worldwide and injured another 180.

Unlike other airbag makers, Takata uses the explosive chemical ammonium nitrate to inflate air bags, but it can deteriorate over time and burn too fast, especially in humid conditions.

Key Safety Systems said it plans to buy most of Takata’s assets and plans to hire almost all of its employees, but will not buy operations related to ammonium nitrate. Takata said it plans to wind down those plants.

Takata has admitted that company employees knew about the potential problems with its airbag inflators as early as 2000. The company acknowledged that it manipulated testing data that the company provided to automakers, convincing them to buy Takata's airbags over those made by other manufacturers.

For Takata, the decision to file for bankruptcy is a stunning fall from grace.

Founded in 1933 in Japan, it used weaving technology to manufacturer lifelines for parachutes and other textiles. Eventually, it grew into one of the world's largest seat belt and airbag suppliers. Nearly every global automaker — including Asian, German and U.S. auto manufacturers — used its seat belts and airbags in their cars and trucks.

In 1991, Takata opened a research and development center in Auburn Hills, where it operates as TK Holdings.

Problems began to emerge in 2008 when Honda recalled 4,000 Accords and Civics. From there, as manufacturers and regulators dug into the issue, the recalls swelled and automakers scrambled to understand the scope of the problem.

In February, Takata CFO Yoichiro Nomura appeared in federal court in Detroit on behalf of the corporation to plead guilty to wire fraud and to express the company's "deep regret" and to accept a $1-billion settlement with the U.S. government.

"I would like to sincerely apologize on behalf of Takata," Nomura said in Detroit that day. "The actions of certain Takata employees to undermine the integrity of the company's testing data and reporting to customers were deeply inappropriate."

The U.S. Justice Department has also charged Takata executives Shinichi Tanaka, Hideo Nakajima and Tsuneo Chikaraishi with one count of conspiracy to commit wire fraud and five counts of wire fraud in an indictment was unsealed on Jan. 13. Those defendants reside in Japan and have not appeared in a U.S. court.

Last year, Takata hired investment bank Lazard to lead a financial restructuring in an effort to reduce the impact of the recalls.

Other bidders for Takata included Japanese inflator maker Daicel and U.S. buyout firm Bain Capital, as well as Swedish airbag and safety system manufacturer Autoliv. But by February, Key Safety Systems emerged as the favorite.

Founded in 2004, Ningbo Joyson has been growing rapidly through acquisitions since 2011. It acquired Key Safety Systems last June for $920 million.

Key Safety Systems, which continues to operate from Sterling Heights, has a global network of 32 sales, engineering and manufacturing plants. Together, Key Safety and Joyson have annual sales of about $3 billion.

Contact Brent Snavely: 313-222-6512 or bsnavely@freepress.com. Follow him on Twitter @BrentSnavely. The Associated Press contributed to this report.